the K/M spread dipped this low on this date. Last year it went to cash settlement somewhat lower than -8.50 and I suspect some traders are remembering the beating the K/Ms took last year. On average over the past eight years the spread has been around -3.00 on this date. A target? I think there is a good chance I can get a point on this trade but may have to settle for something less. If Trump is able to come to terms with Xi and a bull market develops in pork, I may get more than a point.
I never trade the J/M spread.